Palace says Rapu-Rapu commission report to be reviewed

Malacañang will review the findings and recommendations of the Rapu-Rapu Fact Finding Commission (RRFFC), which called for a blanket ban on mining operations in the country, Press Secretary and Presidential Spokesman Ignacio Bunye said.

"We thank the Rapu-Rapu Fact Finding Commission for its work and assure the public that its report would be carefully reviewed and considered," Bunye said.

Bunye stressed however that the mining industry remains a priority concern of the government for development.

"A ban on mining is not the answer but the standards and safeguards already in place and existing laws must be strictly enforced," Bunye pointed out.

On Friday, the RRFFC led by Bishop Arturo Bastes submitted to President Arroyo its 169-page report recommending the closure of Lafayette NL on Rapu-Rapu island in Albay, accusing the company of contaminating the environment.

At the same time, Bastes sought a review of the Mining Act of 1995 and called for a total ban on mining in the country.

Malacañang maintained there should be no haste in deciding whether to seek amendments to the mining law or upholding the RRFFC’s recommendation to close down the Australian-owned mining firm.

At the same time, Bunye said any decision arising from the commission’s recommendation may set a precedent for other cases.

Lafayette Philippines criticized the report as "much too harsh and extreme" in recommending the closure of the mining company for a "relatively minor" spilling accident.

Lafayette officials cited the lack of scientific procedure in conducting the investigation of the mining firm.

The government, on the other hand, is not keen on adopting the recommendation of the RRFFC to close down the company and review the Mining Act.

Republic Act No. 7942 was enacted to liberalize the mining industry to attract more investments. The Supreme Court recently upheld the legality of the new law.

Officials said the government expects mining to generate $5 billion to $7 billion in foreign exchange annually and create 240,000 jobs over the next six years. It should also produce tax revenues of P17 billion to P23 billion.

Mining now accounts for just two percent of the country’s export earnings, compared to 20 percent in the 1970s and 1980s.

Mining industry leaders pointed out a blanket ban would wipe out the foreign investments made in several mining firms in the country.

Lafayette, for its part, had warned that it was running out of cash and that its bankers were circling following the suspension of its operations.

Economic planning manager Romulo Neri said Lafayette is among only eight projects at the production stage since the Supreme Court upheld the legality of the 1995 Mining Act.

Neri estimated the country’s mineral endowment at between $840 billion and $1 trillion, or "about 14 to 17 times the current Philippine external debt of $57 billion. Extracting only a tenth of this mineral wealth would be more than enough to wipe out this debt."

According to Bunye, the country is blessed with one of the richest mineral deposits in the world.

"It will be a disservice to the people if the Philippines’ full mineral potential is not realized," he said.

Bunye said the mining industry would clearly become a huge source of employment and development.

Presidential Political Adviser Gabriel Claudio said the recommendations of the RRFFC would have to be studied, particularly its call to shut down Lafayette.

"That is not the matter of whether the mining law would be amended or repealed, we will be guided also by the input of members of Congress on this," Claudio said.

"I don’t think they should be hasty to have a conclusion on what kind of legislative moves to be done but I think the public can rest assured that the issue of Rapu-Rapu is something the government is not taking lightly," he added.

Claudio said appropriate measures should be taken to ensure the safety of the public while maintaining the stability and confidence of investors.

President Arroyo earlier this year formed the RRFFC headed by Bastes to look into allegations that Lafayette was violating the terms of its mining permit, several weeks after the Catholic Bishops’ Conference of the Philippines (CBCP) issued a pastoral letter urging for a more careful implementation of the Mining Act of 1995 by the government.

The Department of Environment and Natural Resources (DENR) also noted that closing Lafayette would set a precedent for the country’s mining industry.

DENR officials, however, were quick to clarify that accepting the RRFFC report did not mean they would totally approve its findings.

DENR Secretary Angelo Reyes had ordered his officials concerned to review the Bastes commission findings during the weekend and asked them to make a thorough assessment of the report and submit proposals.

Reyes said the DENR recognized the concerns being raised by the RRFFC and the Lafayette were "converging issues" that would require careful assessment.