Twenty operating mines are facing possible suspension for failing to meet environmental standards, Environment Secretary Regina Paz L. Lopez said on Tuesday.
Lopez added that, based on the findings and recommendation of the mine audit teams that conducted the site visit and evaluation of the mining operations in August, the operating mines violated various mining and environmental laws.
They are Libo Mining Corp.; AAMPIL Natural Resources Exploration and Development Corp.-Parcel 1; AAMPHIL Natural Resources Exploration and Development Corp.-Parcel 28; Krominco Inc.; Carrascal Nickel Corp.; Marventures Mining and Development Corp.; Filminera Resources Corp.; Philippine Gold Processing and Refining Corp.; Strongbuilt Mining Development Corp., Sinosteel Philippines H.Y. Corp.; Oriental Synergy Mining Corp.; Century Peak Corp.-Rapid City Nickel Project; Century Peak Corp.-Casiguran Nickel Project, Oriental Vision Mining Philippines Corp.; CTP Construction and Mining Corp.; Agata Mining Ventures Inc.; Hinatuan Mining Corp.; Benguet Corp.; Lepanto Conslidated Mining Co.; OceanaGold Philippiness Inc.; Adarma Mining Resources Inc.; and SR Metals Inc.
Lopez made the disclosure during a press conference at the DENR conference hall in Quezon City on Tuesday, where she announced the result of the mining audit. In effect, the Department of Environment and Natural Resources (DENR) has found only 10 mining companies fit to continue operation.
During the press conference, Lopez showed photos of the mines, which she said was partly the basis why the audit teams recommended their suspension orders.
Since assuming as chief of the DENR, Lopez had already caused the suspension of 10 operating mines, including Zambales Diversified, Benguet Corp. Nickel, Eramin Minerals and Inl Archipelago in Zambales province; Berong Nickel and Citinickel in Palawan; and Ore Asia Mining in Bulacan. Other mining companies suspended in Mindanao are the Claver Mineral in Claver, Surigao del Norte, Emir Mineral and Mount Sinai in Homonhon Island, in Guiuan, Eastern Samar.
“Truth, service and the common good were the basis of our decisions,” Lopez said.
There are 41, not 40, metallic mines currently operating large-scale mining in the Philippines.
Environment Senior Undersecretary Leo L. Jasareno, the head of the audit team, said the DENR, through the Mines and Geosciences Bureau (MGB), would start furnishing the companies copies of the audit reports, including a show-cause order, instructing them to take corrective measures or face suspension.
Lopez said mining companies that were slapped with suspension orders, including those facing the same fate, should “get their act together” and “fix things” to be allowed to continue doing business.
Jasareno said the 10 operating mines allowed by the DENR to continue operation did not necessarily pass the mine audit criteria, which includes social, environmental and biodiversity considerations on top of the physical or technical aspect of mining, but committed minor violations or infractions that can be corrected.
Nevertheless, Jasareno said the DENR would issue an order to the mining companies for them to institute corrective measures, or face possible suspension. They include Philex Mines, Rio Tuba in Luzon; Atlas and Tech Iron in the Visayas; Cagdinao, Taganito, Platinum Group Metals, Greenstone and Philsaga and Pacific Nickel Philippines in Mindanao.
Of the 10, Philex mine is considered among mining companies that demonstrate best practices. However, an accidental leak from its tailings dam in Padcal mine in 2012 continue to haunt the company.
Jasareno said Philex has to clean up its mess at the San Roque Dam, which affected the dam’s power- production capacity.
According to Jasareno, the suspension of mining companies are expected to impact on the country’s gold and nickel output this year.
For nickel, Jasareno said a 55.5- percent reduction is expected in the country’s total production value, representing a total of 18 million tons of nickel ore, as against 32 operating nickel mines produced in 2015.
“For gold, we have not computed it yet. The production output may be significantly reduced,” he said.
There will be no significant effect on copper production, Jasareno said.
Lopez said she would meet with officials and representatives of mining companies facing possible suspensions, including those that “passed” but were found to have committed infractions.
Lopez maintained that the audit teams did their job and said she is happy with the result of the audit.
“The audits were conducted fairly,” she said, belying allegations made by the Chamber of Mines of the Philippines (COMP) that the mining audit was tainted because of the involvement of antimining group Alyansa Tigil Mina (ATM) and other civil-society organizations in the audit process.
“The oceans are polluted, the rivers are silted. That’s the reason they [mining companies] failed the audit. And that’s the truth,” she said.
Meanwhile, Lopez affirmed her commitment to the people in mining communities, saying they would be tapped to be partners of the government in the implementation of the National Greening Program (NGP).
“They will be producing seedling and planting trees. They will produce the seeds and they will earn from it,” she said.
Jasareno added that in Zambales, those affected by the suspension are now benefitting from a project implemented by mining companies.
He said the DENR would issue a directive to the mining companies to rehabilitate mined-out areas and make sure that the workers, in case of suspension, would not be affected.
“Employees should do the rehabilitation. It would be part of an order to the mining companies,” Lopez said.
Lopez added that she wanted the mining companies to “shape up” in line with President Duterte’s marching orders.
The DENR chief said the suspension of mining operation would have no significant impact to the national economy. Mining’s contribution to the economy in terms of GDP remains below 1 percent.
She also said in terms of taxes, the suspension of operating mines will not be strongly felt.
“Eighty-two percent of the mining profit goes to the mining companies, and 18 percent goes to the national government and the local government. Very little goes to the community. That is unfair,” she said.
The DENR chief wants mining companies operating in the Philippines to emulate mining companies operating in Canada and Australia.
“Responsible mining is possible. We can do that. Actually, some companies are there already, but we need to be strict. The DENR must be very strict to ensure responsible mining,” Lopez said.