Miners hit government inaction on new mining contracts

MANILA, Philippines - Mining firms have assailed the government for the continued implementation of an executive order suspending the approval of new mining projects, saying this is detrimental to the sector.

EO 79 was issued during former president Benigno Aquino’s term.  The ban on the approval of new mineral agreements  will take effect until a legislation rationalizing existing revenue sharing schemes and mechanisms is put in place.

“EO 79 effectively set the mining industry back at least a decade. The country missed so many investment opportunities. But the more serious effect of the postponement of mining projects is the deprivation of opportunities for employment, livelihood and development in far-flung communities, especially in Mindanao said, where they are most needed,”Ronald Recidoro said, COMP legal and policy VP.

Stakeholders considered this a dampener as far as investments are concerned, as gross domestic product could have grown up to 10 percent had mining been allowed to flourish. The mining industry contributes a measly 0.7 percent to the country’s gross domestic product.

COMP emphasized that the unstable policy regime of the last administration resulted in staggering loss of opportunity as no new mining agreements were issued and the industry’s fiscal and regulatory regime came under very close scrutiny from the executive, legislative and judicial departments.

But the Mines and Geosciences Bureau (MGB) is set to review EO 79, its provisions and accomplishments.

“We have a good mining law. EO 79 is something that is not needed, it’s just a matter of making sure everything is clear,” MGB director Mario Luis Jacinto earlier said.

COMP earlier reported over $30 billion is expected to be invested in the local mining industry in the next five to 10 years, majority of which are in Mindanao.

“These mining projects are economic catalysts that bring jobs, opportunities and hope to many individuals, especially in Mindanao. The best way to fight the insurgency, crime, and even the drug menace, is to generate jobs in these depressed areas,” Recidoro said.