JFC worried over bills banning mining in some provinces, cities

MANILA, Philippines - Foreign businessmen have raised concerns over bills seeking to ban mining in certain areas, citing that such are not consistent with the Mining Act. 

In a letter dated Feb. 16 to Senator Loren Legarda, who chairs the Committee on Environment and Natural Resources, the Joint Foreign Chambers (JFC) expressed reservations on pending bills designating certain areas as mining-free. These bills are House Bill (HB) 45 – Cagayan de Oro City, HB 670 – Catanduanes, HB 3667 – Nueva Vizcaya, HB 3780 – Eastern Samar, HB 4363 – Second District of Sorsogon, HB 5260 – Nueva Ecija, HB 5261 – Biliran, and HB 5262 – Davao City, which are currently under deliberation by the committee.

“The JFC recommends that the Philippine Mining Act be respected and implemented evenly throughout the nation. It is our position that the proposed ban on mining in certain provinces and cities under the various HBs are inconsistent with Republic Act (RA) 7942,” it said. 

The foreign business group noted that mining could be promoted as a viable industry under existing constitutional and legal structures which could create jobs, empower communities and enable sustainable ecological and economic development.

RA 7942 or the Mining Act, the groups noted, was enacted to promote the development of the industry by providing significant social and environmental safety nets.

The Mining Act is considered at par with mining laws of other countries such as the United Kingdom, US, Australia, and Canada, if not better, as it includes social and environmental obligations of mining companies.

Given the country’s rich mineral resources, many mining companies have expressed serious interest to invest here, with target investments ranging from hundreds of millions to several billion dollars.

According to think tank Fraser Institute of Canada, the Philippines is among the top 10 countries most attractive for mineral development based on mineral potential alone.

While there is interest from companies to invest in mining here, the government’s moratorium in approval of new mining contracts, however, has stalled the growth of the industry. 

The JFC is a coalition of the American, Australian- New Zealand, Canadian, European, Japanese and Korean Chambers in the Philippines and the Philippine Association of Multinational Companies Headquarters Inc.

It represents over 3,000 member companies engaged in over $230 billion worth of trade and $30 billion worth of investments in the Philippines. 

As the foreign business group seek to promote the creation of an investor-friendly environment in the Philippines to achieve inclusive growth, it has come up with a list of recommendations through the Arangkada report launched in 2010.