Exemplar

There is such a thing as responsible and ethical mining. We have the complete policy framework to attract the best investments that will enable the country to leverage its rich mineral resources for our people’s economic growth.

The Mining Act of 1995 was trapped at the Supreme Court for a decade because of petitions filed by dogmatic environmental groups. Having cleared the legal obstacles, this law ought to have attracted a flood of investments.

Sadly, however, investments have been less than expected. There could be many reasons for this. The permitting process may be tedious and unpredictable. Mining, because of the long gestation required, could be vulnerable to our rather unstable politics. Investors could be fearing an unsteady policy environment. Then, as in most other areas of business, there is the problem of corruption to worry about.

It could be that while world-class environmental safeguards are well in place in the Mining Act, policies supportive of exploration might need some perfecting. Mining is a capital intensive industry. The investments begin with exploration of areas to test for commercial viability of mining activity. We might need to examine our policies regarding exploration to encourage investors to test for deposits.

Hopefully, with time and the accumulation of experience, mining will become less contentious. This could be a robust industrial activity that helps sustain inclusive economic growth. Successful mining enterprises could directly assist the communities that host them.

There are more and more examples of ethical mining enterprises that should calm fears about environmental degradation. Modern mining, after all, makes use of new technologies that enable efficient extraction to happen without upsetting the ecology.

One compelling example of ethical as well as technological mining activity is the Runruno Gold Project in Quezon, Nueva Vizcaya. The project, operated by FCF Minerals Corporation, sets the gold standard for how responsible mining can drive community transformation. It sets the benchmark for ethical resource extraction.

Because of this mining project, the town of Quezon rapidly evolved from a fourth-class to a first-class municipality in a few short years. Quezon mayor Dolores Binwag credits FCF for including infrastructure development, improvement of health care and educational support in its investment.

The company upgraded the road network in the area at the cost of P150 million. This significantly improved trade and transportation for the surrounding communities.

Nearly all of the FCF’s over 1,200 employees are local residents. The stable employment and secure incomes produced virtuous ripple effects in the host community. It has certainly lifted numerous families from economic uncertainty.

FCF has, to date, awarded 119 scholarships for young residents of Quezon town. This enabled them to pursue higher education and build professional careers.

In addition, FCF extended funding support for the town’s health care programs. This enabled the local government to upgrade their clinics, extend their operating hours and ensure residents have access to quality medical care.

The company’s close cooperation with the local government built a strong sense of shared progress between residents and the mining company.

For its dedication to responsible mining, the company received the Presidential Mineral Industry Environmental Award (PMIEA) for three consecutive years. It was also honored with the Safest Surface Mining Operation Award.

Recently, FCF received two prestigious ASEAN Mineral Awards in ceremonies held in Cambodia. These awards reinforce its standing as a regional leader in sustainable mining.

The experience with the Runruno Gold Project in Nueva Vizcaya is not a tough act to follow. All it requires is for both the mining investor and the host community to see themselves as partners in a shared enterprise for progress.

Public skepticism towards mining is rooted in historical experiences where, under the flawed former policy framework, corporations ran roughshod over both the environment and the host communities. Under the current policy framework, mining firms are encouraged to engage local stakeholders with full transparency, invest in the remediation of the environment and fully exercise corporate social responsibility.

There will continue to be resistance to mining rooted in ideological convictions or unwarranted fears. But as an increasing number of mining projects demonstrate that ethical mining and shared progress are possible, resistance should diminish over time. It is for the mining investors to ensure this happens.

In the case of FCF, the replicability of its positive experience in Nueva Vizcaya will be tested in a new project. Its subsidiary, Yamang Mineral Corporation, is now in the advanced stages of the permitting process to explore a promising copper and gold reserve in the nearby province of Abra.

The exploration stage is largely focused on studying an area to assess its mineral potential. This involves activities such as land surveys, mapping, soil sampling and some drilling. It does not involve large-scale land disturbance.

The real test of a company’s commitment to ethical mining is when it actually begins commercial mining operation. Some minerals, such as copper and gold, can only be done using open pit mining methods.

Some years back, the province of South Cotabato blindly banned open pit mining. This set back the progress of a mining investment set to extract what is described as one of the biggest copper veins ever found.

Modern economies thrive on the use of metals. Mining is unavoidable. It is government’s responsibility to see to it that only the most reputable investors are allowed in and the best mining practices closely observed.