DENR to announce Rapu-Rapu mine fate this week

Department of Environment and Natural Resources (DENR) Secretary Angelo Reyes said the fate of the mining firm Lafayette Philippines would be decided following the Independence Day celebrations this week.

Reyes said the DENR’s decision on the firm’s mining operations on Rapu-Rapu island in Albay would be based first on the interests and welfare of the majority of Filipino people, and second on its concerns about the country’s mining industry.

"There would be those who would be displeased by the decision on Lafayette," he said.

"The issue here is not just whether we will allow the Rapu-Rapu project to reopen or not based on technical and environmental considerations," Reyes said. Rather, the decision should "ensure... that the welfare of the Filipino people is taken into utmost consideration."

"I will come up with a decision soon," said Reyes without giving any precise timetable.

Reyes said the DENR has studied all the issues relevant to the incidents and the mining operation, as well as the government response in terms of enforcing the rules and monitoring the P1.4-billion mining project of Lafayette at Rapu-Rapu island off Albay.

President Arroyo earlier this year formed the Rapu-Rapu Fact-Finding Committee (RRFFC) and appointed Sorsogon Bishop Arturo Bastes to head the probe on allegations that Lafayette had violated the terms of its mining permit.

Bastes led the RRFFC in submitting its 169-page report before President Arroyo last month, recommending the total closure of Lafayette and went on to call for a review of the Mining Act of 1995.

Lafayette and mining officials slammed the RRFFC report, claiming the recommended closure of the Australian-owned mining firm over a single accident was too harsh.

They claimed RRFFC went beyond its mandate in calling for a review of the Mining Act of 1995.

Reyes stressed that being the DENR secretary and Pollution Adjudication Board (PAB) chairman, he still had the final say on whether to shut down Lafayette based on the recommendations of the RRFFC.

But for now, Reyes refused to give any hints on his final decision, stressing the RRFFC report requires a careful study of the issues.

"We deeply appreciate the efforts of the (Bastes) Commission because they provided us with critical input that will help us form our decision," Reyes said.

Apart from its own assessment of the RRFFC report, Reyes said the DENR also sought the assistance of technical experts to provide new feedback relative to the findings of RRFFC and Lafayette’s position.

Among the issues tackled were acid mine drainage, dam integrity, fish kill and other environmental and social impacts of the spill incidents.

Reyes said several experts have been called to give input on the issues.

He said the DENR has also considered other independent studies made relative to the spill incidents, including those conducted by the Natural Science Research Institute of the University of the Philippines (UP-NSRI) and the Bureau of Fisheries and Aquatic Resources (BFAR).

Last month, the DENR conducted an open forum concerning the issues surrounding Rapu-Rapu.

Reyes said they are now in the final stages of consultation with other sectors, experts and other government agencies.

"We have presented to them our initial assessment of the (RRFFC) Commission’s Report and discussed all the options available to DENR so that we can make an informed decision on the matter," he said.

The DENR is also studying the non-environmental issues raised by RRFFC such as Lafayette’s corporate structure, incentives package and taxation matters.

Upon his arrival in Davao City for the launching of the Davao leg of the Recyclable Collections Events, Reyes told reporters the final report was almost ready for release to the public.

He said their report was based on input from different sectors involved in the mining industry and experts in the field.

Meanwhile, Lafayette president Carlos Dominguez said the mining firm will allocate some P400 million for post-mining operations should the DENR orders its closure.

"We do not have an exact amount at the moment as we are at an inflationary period. It could be around that amount," he said.

Dominguez explained the post-mining operations would include the reforestation of Rapu-Rapu.

"I haven’t gone through the numbers yet but it could be close to that amount as costs keep changing such as the cost of fuel," Dominguez added. — With Edith Regalado