Local economists supported President Duterte’s statements on mining and his stand against the export of raw mineral ores from the Philippines.
The President, in his second State of the Nation Address (Sona), emphasized the need to promote responsible mining and urged miners to process the minerals in the country to make the industry really inclusive.
With his pronouncements, Duterte was able to tell the public that he was not pro-mining but is for responsible mining, according to Rene Ofreneo, UP School of Labor and Industrial Relations faculty member.
“He was able to redeem himself, especially on environment issues since last year. His hesitation in signing the Paris Agreement and the removal of former Environment Secretary Regina Paz L. Lopez due to pressure from the mining lobby sent the impression that the President was leaning in favor of the mining industry,” Ofreneo said.
“It was also good that he adopted our proposal on value adding for the mining sector, that raw minerals, ores, should not be exported,” he added.
Meanwhile, University of Asia and the Pacific School of Economics Dean Cid Terosa said the President’s discussion of the environment and also the importance of sustainable development is a step toward the right direction.
Terosa added these are part of the foundations of sustained economic growth and development, which include civil order, civic education and participation, peace and security, social services, infrastructure, economic reform and institutional efficiency.
However, Terosa said the President failed to mention exact measures to allow growth and development to trickle down to regions, provinces, municipalities and cities outside of Metro Manila. “It would have been a good context for the troubles faced by the government in Mindanao. Specific measures to advance access to social services would have been another important theme,” Terosa said.
For his part, Ateneo de Manila EagleWatch senior fellow Alvin Ang said it was good that the President recognized in his Sona the coordination failure in government.
Ang also said the President’s mention of the importance of the environment and antidisaster efforts. He also supported the President’s responsible mining stance. Political economist Maria Ella C. Oplas of the De La Salle University said the land-use plan is long overdue. “But what remains to be a big question now is the implementation aspect.”
“His request to the mining sector is valid. There are responsible mining firms and irresponsible mining firms. It is high time that we go all out against the irresponsible mining firms. What I really wanted to hear are his plans on small-scale mining, because they are the scarier issue. I don’t know why he is silent on that,” Oplas added.
Duterte, in his second Sona, underscored the need to invest in midstream manufacturing activities, especially for the extractive industries. Adjunct to this is a renewed proposal to stop the export of mineral resources.
“We’re calling on industries and businesses to put up manufacturing establishments to process raw materials into finished products,” Duterte said in the early part of his two-hour speech. “It is not enough to mine these minerals, but we should process them into finished products.” The firebrand president likewise underscored the environmental impact of mining activity—warning extractive industries to invest in restoration activities or else be “taxed to death”.
Trade Secretary Ramon M. Lopez said it has always been his position that higher value-adding be done with natural resources, but gave a more tempered response to taxation as a way to encourage local processing.
“Of course, our first move is to enjoin these industries, and right now we already give incentives to processing in the Investments Priorities Plan,” Lopez said in a phone interview following the President’s Sona.
Lopez clarified that he is not proposing to levy export tax on minerals to discourage shipments abroad, but said this may be a policy option of Congress in the future if industries remain unresponsive.
“We don’t need that export tax right now, although that is what other countries are doing with their natural resources, even with agricultural products. We’re not proposing that, but it could be the next move in the future,” he explained.
Philippine Chamber of Commerce and Industry President George T. Barcelon advised that there should a gradual process to limiting exports. “We look forward to having higher value-adding here because these processing activities are likely to be big-ticket items that can provide a lot of jobs. But this can’t be done overnight; it won’t be immediate,” he said in a phone interview.
Image credits: Alysa Salen