CMP bats for balanced mining policy

MANILA, Philippines - The Chamber of Mines of the Philippines (CMP) yesterday urged Malacañang to take a second look at its draft executive order (EO) on the mining industry with a view to crafting a “balanced mining policy for the best interest of the country and our people.”

Meanwhile, the CMP is seeking an audience with President Aquino, and to sit with his Mining Policy Study Group and other concerned government agencies “to discuss more practical and doable options for reforms that are consistent with responsible mining and sustainable development framework.”

In a position paper on the draft EO entitled “Institutionalizing and Implementing Reforms in the Philippine Mining Sector, Providing Polices and Guidelines Therefor, and for Other Purposes,” the CMP recommended the reactivation of the Minerals Development Council and the Mining Investment Security Task Force to ensure the security of mining investments.

The CMP said that in the past, the two agencies were successful in overseeing the development needs of the mining sector, as well as the implementation of security protocols in remote provinces, including those classified as “hotspots” or conflict areas.

The mining industry players and stakeholders earlier warned the Palace against rushing the issuance of the still unnumbered EO, saying it might do more harm than good for the mining sector.

They stressed that the EO might even translate into a “virtual death sentence” for the industry considering that some salient provisions were deemed prejudicial to the security of mining investments.

In its manifesto, the CMP underscored the important role mining plays in national development and poverty alleviation thus, must be encouraged and promoted.

The group pointed out that while mining has a big impact in improving the lives of the people in the countryside in terms of economic and infrastructure development, its effect on the eco-system is “relatively small and does not conflict with agriculture, eco-tourism, and other productive industries.”

Nonetheless, the CMP said there is a need to harmonize laws on mining crafted by Congress with conflicting ordinances passed by the local government units (LGUs).

To address environmental issues and ensure a fair share for the government in mining revenues, the CMP recommended that jurisdiction over small-scale mining be given back to the DENR, and that small miners be subjected to the same standards and regulations being imposed on the large-scale mining operators.

The CMP also batted for a more effective regulation and monitoring of the small-scale mining operations, as well as for the development of downstream industries to optimize the benefits from the mineral resources, and spur greater productivity and efficiency.

The CMP recalled that large-scale mining operations peaked in the 70s, accounting for about 21 percent of the country’s total exports. However, the industry virtually ground to a halt due to the severe oil crisis during the decade, and continued to struggle in the mid-80s through the 90s, compelling the government to enact the Mining Act of 1995 to revive it by creating a more favorable climate for investments in mining.