RP urged to form council to enforce responsible mining

ZAMBOANGA CITY — Canadian Ambassador to the Philippines Peter Sutherland urged the Philippine government to create a council that will enforce responsible mining in the face of strong opposition from some sectors against mining activities in the country.

Speaking at the 15th Mindanao Business Conference (MBC) held at the Astoria Regency Convention Center in this port city, Sutherland said the Philippines must show strong will in implementing responsible mining regulation.

"Without the mechanism for responsible mining, stakeholders are talking past at each other," Sutherland told participants of the 15th MBC, saying that future foreign investments in the country will depend on how those already on the ground will fare in the face of the opposition.

Canada, which is investing $15 million in mining around the world, has at least eight Canadian mining firm investments in the country, including the TVI Resource Development Inc. operating in Canatuan, Siocon Zamboanga del Norte.

Eugene Mateo, president and director of the TVI legal affairs, said the company’s contribution to the government in terms of taxes is expected to double from last year’s contribution to the government following the implementation of responsible mining methods.

Mateo disclosed that in the first two quarters alone this year, the TVI Canatuan mining operation has already paid P16 million in excise taxes to the Philippine government.

He said 35 percent of the excise tax payments goes to the local government unit or the host of the mining activity, which is payable in three years by the government as provided by the law.

"We are willing to pay the local government directly so that the place can use the funds for whatever development programs aside from the development assistance we are providing. However, we cannot do that as this will violate existing laws," Mateo said.

He also bared the firm’s ongoing explorations in Balabag, Bayog town, Zamboanga del Sur, where the company is reportedly investing P1 billion.

He said the proposed mining area is bigger than the Canatuan project located at the north of Zamboanga peninsula.

Mateo said it will create a council from the locality, composed mostly of indigenous people (IP), to establish check and balance as required by the government.

The exploration, which started six months ago has already employed people from the localities, aside from the 50 geologists and 150 carriers who are mostly Subanons.

TVI is expecting to extract copper, gold and zinc at the Balabag mining site.

Mateo said TVI will also invest in Compostella Valley, a known gold mining basin in Mindanao.