Malacañang throws back to DENR SMI appeal

MANILA, Philippines - The Office of the President (OP) has remanded to the Department of Environment and Natural Resources (DENR) the appeal filed by Sagittarius Mines Inc. (SMI) for the provision of an Environmental Complianace Certificate (ECC) for the $5.9 billion Tampakan copper-gold project in South Cotabato to determine if the company has complied with all the requirements for the granting of an ECC.

Communications Secretary Ricky Carandang reportedly announced the action taken by Malacacang on SMI’s petition.

It was confirmed yesterday by Mines and Geosciences Bureau (MGB) Leo Jasareno.

“With this development, we look forward to the issuance of the ECC by the DENR,” said SMI in an official statement issued yesterday.

“Once the ECC is issued, we look forward to starting with work programs together with other key approvals and regulatory requirements including the preparation of our Environmental Protection and Enhancement Program (EPEP), Final Mine Rehabilitation and Decommissioning Plan (FMRDP), and the development of the Social Development Management Plan (SDMP),”  SMI said.

The ECC guarantees that a project will not cause damage to the environment.

The Department of Environment and Natural Resources (DENR) rejected in January 2012 SMI’s application for an ECC.

SMI filed an appeal which was likewise rejected by the DENR in May 2012 because of a standing ordinance of the South Cotabato  provincial government banning the use of the open-pit mining method in the province.

In its appeal to the DENR, SMI had argued that the company has passed all the requirements for an ECC through an extensive impact study, even receiving the recommendation of the Environment Management Bureau (EMB) for the granting of the clearance. It also argued that the ban imposed by South Cotabato on open-pit mining is inconsistent with national law.

In a decision dated May 22, the DENR denied SMI’s appeal concerning its ECC application saying the issue of the legality of the use of open-pit mining method is not within its power to decide on. It said that before SMI’s ECC application would be considered it should first resolve its issue with the South Cotabato government.

In July, SMI filed an appeal directly with Malacañang.

“In May 2012, DENR has already confirmed that both the Environment Management Bureau (EMB) director and the independent  Environmental Impact Assessment Review Committee (EIARC) have agreed that SMI had satisfactorily completed the procedures and requirements under the Philippine EIS system,” SMI said in the statement.

“Both the EMB and the EIARC have recommended to Secretary Paje in May 2012 that SMI be issued an ECC because it has complied with all the requirements needed for the issuance of an ECC. And, therefore, they recommended the issuance of the ECC.”

SMI earlier announced that it is pushing back the target date for the start of commercial operations of its Tampakan copper-gold project  to 2019 as it deals with regulatory and operational difficulties.

The company said it had provided the Mining Industry Coordinating Council (MICC) with an updated project development plan for the Tampakan copper-gold project “that outlines the potential for commercial production to commence in 2019.”

SMI has originally intended to begin the commercial operations of the mine in 2016.