Harmonization of mining laws urged

MANILA, Philippines - The Chamber of Mines of the Philippines called on the Aquino administration yesterday to act on harmonizing conflicting national and local laws that have become what the chamber describes as irritating obstacles to President Aquino’s developmental agenda.

The Chamber expressed its deep concern over a new provincial ordinance banning open pit mining in Zamboanga del Norte.

The ban affects two CoMP member-companies: TVI Resource Development (Phils.), Inc. (TVIRD), which operates a copper-zinc mine is Siocon town; and Philex Gold Philippines, Inc., (PGPI) which plans to revive its gold project in Sibutad municipality.

According to the chamber, the open pit mining ban ordinance contains “onerous” terms – including “sweeping new provincial regulatory powers over large mining operations that clearly usurp the authority of the National Government.”

The ordinance, the chamber pointed out, “is grossly unconstitutional. It sends a conflicting signal to all potential investors of the country and is an urgent issue that must be addressed by both the national and local government.”

The chamber reiterated its position that mining benefits all stakeholders and that the chamber advances responsible stewardship of the environment.

The chamber stressed that TVIRD and Philex are “reputable corporate citizens with excellent track records in protecting the environment and in advancing the development of communities in which they operate.”

The chamber warned that “the Zamboanga del Norte ordinance will have a destabilizing effect on the province as the new law will adversely affect the livelihood of hundreds of employees and their families as well as of thousands of residents in host and impact communities of TVIRD and Philex that benefit from the responsible mining operations of these companies.”

The chamber argued that the ordinance is “biased towards small-scale mining, many operators of which do not follow proper health and safety standards.”

The chamber pointed out that small-scale miners “do not employ methods of mineral extraction that mitigate the impact of their operations on the environment.

Furthermore, the chamber said, “small-scale mining operations are not subjected to the stringent environmental regulations required in large-scale mining.

The chamber pointed out that “government tax collections from small-scale mining operations are not commensurate to the volume of minerals that they mine.”

The chamber stressed that “responsible mining operations such as TVIRD and Philex have proven to be effective partners of government in revenue enhancement, employment generation, livelihood promotion, educational advancement, environmental management and protection, as well as poverty alleviation. We appeal to our political leaders to stop penalizing legitimate and responsible enterprises and stop believing false and anti-development propaganda disguised in the name of the environment or ancestral domain. There are proven and modern solutions in responsible mining for the huge benefit of all.”