Council to review DENR closure of mining firms

MANILA, Philippines - The government’s Mining Industry Coordinating Council (MICC) is bent on subjecting to review the recent decision of Environment Secretary Regina Lopez to close down some mining firms and terminate existing government contracts with mining companies.

In a press briefing yesterday, Finance Undersecretary and Legal Services Group head Bayani Agabin reiterated that the Department of Environment and Natural Resources (DENR)’s closure and suspension orders are appealable to the Office of the President, and as such could be reversed, modified or altered by Malacañang.

“As discussed during the MICC meeting last week, there is a need to observe due process. Due process is both substantive and procedural,” Agabin said.

“As a general principle of law, decisions of Cabinet secretaries are appealable to the President, since the former are alter egos of the latter. As such, their decisions can be reversed, modified or altered, if warranted,” he added.

Earlier this month, Lopez announced the closure of 23 mining companies, effectively revoking their mining contracts. Five more firms were later suspended.

She also recently announced the cancellation of some 75 mineral production-sharing agreements (MPSA), which are contracts between the government and mining contractors.

“If there are provisions (in the contract) for dispute resolution, this should be observed. If there are grounds for termination, these should be the basis for any termination,” Agabin said.

The MICC, co-chaired by the Department of Finance (DOF) and the DENR, last week issued Resolution No. 6, which guides the council members on how to proceed with the DENR’s directives.

The resolution stated that both the DENR and the council should recognize the requirements of due process.

The MICC also decided to form a multi-stakeholder panel to review the performance of all existing mining operations.

“Pursuant to EO (Executive Order) 79, the MICC shall create a multi-stakeholder review and advise the DENR on the performance of existing mining operations in consultation with local government units,” the resolution read.

“The review shall be based on the guidelines and parameters set forth in the specific mining contract and in other pertinent laws, taking into account the valid exercise of the State’s police power to serve the common good, especially the poor,” it added.

Meanwhile, Agabin said the DOF still has not received copies of the DENR’s order and the results of the mining audit.

“We have not seen the orders nor the audit, so we are not aware of the grounds nor the manner by which DENR Secretary Gina Lopez has made her decisions,” he said.