Mindanao mining coalition urges P-Noy to resolve open pit mining row

MANILA, Philippines - The Coalition for Responsible Mining in Mindanao (COREMin2), an alliance of key mining companies in Mindanao, is urging President Aquino to step in and resolve the growing dispute over local ordinances banning open pit mining.

In a statement, COREMin2 added its voice to the call for the immediate repeal of provincial environment ordinances that ban open pit mining methods in Mindanao, particularly in South Cotabato and in Zamboanga del Norte.

COREMin2 urged President Aquino to seize the opportunity for Mindanao to maximize its potential for growth and development through responsible mining.

“We implore the President to step in and act decisively to resolve this issue,” COREMin2 said.

COREMin2 is strongly committed to the responsible development of mineral resources in pursuit of sustainable development in Mindanao

COREMin2 expressed its support for its three member-companies - TVI Resources Development (Phils.) Inc. (TVIRD), Philex Gold Philippines Inc. (PGPI) and Sagittarius Mines, Inc.(SMI) -- which are directly affected by the local legislations that contravene the national law.

The local ordinances, COREMin2 argued, contradict the national policy on mining as embodied by Republic Act 7942 or the Philippine Mining Act of 1995.

The local ordinances, COREMin2 said, violate due process, equal protection and non-impairment of contracts clauses of the 1987 Constitution.

Further, COREMin2 said, the ordinances are anti-development and do not respect the free will of the Indigenous Peoples to decide on affairs that directly impact their development.

The LGU-imposed bans, COREMin2 said, would not only put to risk the employment and livelihood of the mining communities, but would also seriously undermine the ongoing development and good-governance initiatives in the communities such as health services, education, livelihood, community infrastructure and utilities.

The ordinances, COREMin2 said, are anti-responsible mining as they seemingly favor illegal small-scale mining activities that often employ crude practices which pose a danger to the communities and the environment.

The ordinances, COREMin2 added, undermine the National Government’s duty to regulate large-scale mining companies on the basis of a national law that provides for adequate protection of the environment and the communities.

COREMin2 cited the potential of responsible mining as engine of growth in Mindanao and the rest of the country.

The Philippines is ranked 5th in the world in terms of mineral resources and mining in the country is a re-emerging industry due to increasing metal prices.

Investments in mining alone can account for a fifth of the Philippine’s economic growth in the near term, helping local communities to poverty, the coalition said.

COREMin2 expressed the view that the Mining Act of the Philippines (Republic Act 7942) satisfactorily provides a framework for ensuring that the country gains the maximum benefits from the development of mineral resources without compromising environmental integrity.

The ordinances banning open pit mining methods in Zamboanga del Norte and South Cotabato, COREMin2 said, are disconcerting because mining method is dictated not out of whim, but by comprehensive studies that consider the configuration of the deposit and the geological features of the region.

TVIRD,PGPI and SMI, COREMin2 vouched, are known for their responsible mining practices and have high standards on environmental rehabilitation and mitigation activities as required not only by existing laws, rules and regulations but relevant international best practices.

More than overstepping on national laws and policies, the open pit mining ban has enormous and encompassing implications to the country’s investment climate, sending tremors to investors and putting once again the Philippines on the list of countries with inconsistent and unreliable policies.

COREMin2 supports the position of President Aquino III to “protect the investment” while ensuring that mining is responsibly done - with utmost care and concern for the people and the environment and strict adherence to the ideals of good corporate citizenship.

The coalition also supports the moves of the National Government to harmonize national policies on mining, which will ensure that such policies are clear, coherent and consistent.