Gov’t open to review of mining rules, engage industry players

MANILA, Philippines – As angry mining companies contest the government’s recent policy on the mining industry,  Malacañang said the government is willing to review the new mining policy and its rules, as well as engage with the mining players to avoid going to court. 

“We will study [the IRR] and we will look into it and if there are reasons for us to… if there are ways that we can address it then we will,” said Communications Secretary Ricky Carandang at a press briefing on September 20.

He was addressing the concerns of — as well as threats by — the Chamber of Mines of the Philippines, which held a 3-day conference in Pasay City to discuss issues and strategies amid a business and political environment that they said is not favorable to them.

The day before, September 19, the President of the Chamber of Mines Philip Romualdez threatened to sue the government over a provision in the Implementing Rules and Regulations (IRR) of the Executive Order 79 (EO 79), the policy released by the Aquino government that covers the mining stakeholders.

“The provision is patently illegal. May I repeat, this is illegal,” said Romualdez, before threatening legal action.

Romualdez was referring to Section 9 of the IRR that requires mining firms to renegotiate their contracts after one 25-year term in violation of the Mining Act of 1995, which guarantees companies two 25-year terms under the same terms and conditions.

For mining companies that means the difference between pouring large sums of money into developing an area for 25 years instead of an assured 50 years.
Companies say this will hit their bottom-line and scare away new investments.

Consultations

Carandang said the mining council created by EO 79 to craft the IRR and draft the mining reform bil have been consulting the mining players, including the large and medium-scale firms that are members of the chamber.

“I think the Chamber of Mines has been appraised by members of the MICC (mining council) and I think the lines of communication remain open. So I don’t see any need for the MICC as a whole to meet with the Chamber of Mines at this point,” Carandang said. 

At the mining conference, industry leaders lamented the lack of consultation in the crafting of the IRR.

Throughout the 3-day event, various industry players said they were only given 1.5 hours on September 7. The IRR was released on September 11.

They said Section 9 of the IRR was not in the draft that was presented to them and that they have dutifuly informed the MICC members that they have made known to the officials that there are legal flaws in implementing it.

They said they were “pushed to the wall” when their mining contracts were cut by half since this will immediately cut their assets and cash flows.

Gov’t wants to avoid a lawsuit

Carandang was quick to back away from a lawsuit. He said the government is open to reexamining the new rules.

“Give us time to look over the concerns that they have expressed and we will do what we can to address them,” he said. 

“I don’t think anybody wants to see this issue litigated. The best way for it to move forward and the quickest way possible is to avoid litigation. And so that’s not the desired course that we want to take,” he added.

Presidential Spokesman Edwin Lacierda admitted he didn’t know the specifics of the IRR but said, “We’d like to come up with a win-win solution to these concerns.”

Earlier, Environment Secretary Ramon Paje said in a statement he stands by the IRR.

Revisions

On September 19, mining firms aren’t closing their ears and are willing to talk to government again before taking legal action.

“We still have to change the IRR, my plea is for the DENR to be humble and open themselves to possible revisions for the IRR,” said Ernesto Ordinez, the President of the Cement Manufacturers Association of the Philippines.

“You know if they amend the EO, addressing that issue (in Section 9) then we don’t have to go to court. We want to work with the executive,” added Aquino. – Rappler.com

Read the Blog on the 2012 Mining Conference for a blow-by-blow account of issues being discussed.

For the existing mining contracts in the Philippines, view this #WhyMining map.

How does mining affect you? Are you pro or against mining? Engage, discuss & take a stand! Visit Rappler’s #WhyMining microsite for the latest stories on issues affecting the mining sector. Join the conversation by emailing whymining@rappler.com your views on the issue.

For other views on mining, read:

Yes to Mining	No to Mining
Correcting lies and disinformation by Gerard H. Brimo	Stand for the environment by Regina Lopez
How can mining work for Philippines? by Manuel V. Pangilinan	Mining is a social justice issue by Christain Monsod

More on #WhyMining:

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• The Mining EO: A mixed bag
• Mining E.O. not perfect, but very good
• CONVERSATIONS: What are your thoughts on the mining EO? #WhyMining
• Mining E.O. pits gov’t vs local execs
• Correcting lies and disinformation
• Stand for the environment
• How can mining work for Philippines?
• Mining is a social justice issue
• REPLAY: #WHYMINING