Benefits from mining industry "imaginary"?

An alliance of environmentalists and other groups called "Defend Patrimony" has describe the so-called benefits of a liberalized mining industry as "imaginary" and "far-fetched."

"How these figures were derived most certainly requires a great deal of imagination, considering the mining sector's recorded contribution to the economy," said Regina Tecson, Defend Patrimony-Cebu coordinator.

She said that despite the scale of mining activities in the country, the sector has contributed an average only of 1.34 percent to the gross domestic product since 1991. In 2003, she said the figure grew to an unimpressive 1.6 percent, adding that gross production value in mining was only P38 billion and only less than half of this amount was gross value added or mere 1.52 percent of the GDP.

"Almost a decade since the passage of the Republic Act 7942 (Mining Act of 1995), no actual transfer of productive capital to the local mining sector had occurred," Tecson said.

In a press conference last Thursday, MGB Assistant Secretary Jeremias Dolino said that the 23 mining projects that would be implemented until 2010 are expected to bring in US$6.5 billion in foreign direct investments and create some 200,000 jobs for the Filipinos.

However, Tecson said that in 2003, mining only provided some 104,000 employment, or only about 0.3 percent of the employment in the country. She said that employment in the mining sector steadily declined by an average of three percent annually from 1991 to 2000.

"Mining contract holders are also granted wide area of coverage for their operations and renewable 25-year period of effectivity for their Financial and Technical Assistance Agreements and Mineral Production and Sharing Agreements. They even have the option to withdraw or terminate their mining operations by simply declaring that the mining venture is no longer practicable," she said.

Delia Albert, Philippine envoy for mining said that the mining industry has become very active after the Supreme Court, in its December 2004 decision, declared the 1995 Mining Law constitutional, allowing majority foreign ownership of domestic mining enterprises.

"Now we will have capital and technology to revitalize the industry that would help our country a lot," Albert said.

With the big revenue expected to be generated by the mining industry, Albert said that it would be able to help lift the country's economy and alleviate poverty.

With the implementation of the Mining Act of 2005, she assured that the environment would be safeguarded because the government is committed to implement the environmental aspects of the law.

President Arroyo has made revival of the mining industry one of the cornerstones in her plan to achieve sustainable economic growth in the country. She said that in a nutshell, the country's mining policy has minimum environmental and social effect but maximum contribution to the war on poverty.

The country is seen to have the potential to become the fifth largest mineral producer in the world with the third largest gold reserves, and the fourth largest copper reserves. - Wenna A. Berondo