Malleable mining policy


NATIONAL governments define the national agenda.

Therefore, the execution of such agenda determines the national outcome.

Policy decisions and initiatives made by the national government should be superior to those of local governments.

And yet why is that certain local government units seem to act like separate republics in churning out local laws which greatly impact on key industries whose development is, quite ironically,  being encouraged by the Aquino administration?

What makes things worse is that the administration can’t seem to whip LGU executives and local legislative assemblies into line and make them comply with a national policy.

Take the case of the mining industry which is experiencing a boom on account record-high metal and mineral prices in the world market.

This paper has been a staunch supporter of responsible mining that is compliant with best global corporate practices and international environmental standards.             

We believe mining can detonate a regional economic boom, transform remote communities, generate jobs, and raise taxes and royalties for the government. This decidedly is a win-win thing. 

And so we agree with and support calls for the government to “act decisively” on its mining policy and bring an end to provincial ordinances that “defy” national law and “damage” international confidence in the country’s mineral investment policies.

This call was raised in the Consolidated Position Paper on Mineral Resource Development prepared by the Philippines Australia Business Council, Australia Philippines Business Council, Australian-New Zealand Chamber of Commerce, Philippine Chamber of Commerce and Industry and the Chamber of Mines of the Philippines.

“The much-publicized ban on open pit mining in some localities and the general ban on mining in some areas have caused a slowdown on major projects and expenditure flows have been shelved with some investors looking beyond the Philippines for mining investments,” the joint position paper said.

The groups said a “clear statement” on how the government intended to intensify the mining industry’s growth as one of the priority industries would help shore up investor confidence.

South Cotabato and Zamboanga del Norte have both passed ordinances specifically banning open pit mining.

Last Thursday, the Chamber of Mines issued a separate statement saying it was “deeply concerned” as the ban in Zamboanga del Norte affected two of its member-companies: TVI Resource Development (Philippines) Inc.,  which operates a copper-zinc mine in Siocon town, and Philex Gold Philippines Inc., which plans to revive its gold project in Sibutad municipality.

The provincial assembly in Zamboanga del Norte had published the ordinance last week. In a statement TVI Pacific promptly said it would challenge the “unconstitutional” ordinance in court.

The Chamber of Mines earlier expressed concern about the open-pit mining ban in South Cotabato, which was signed by the outgoing provincial government in mid-2010.

The ban threatens the $5.9-billion Tampakan copper-gold project of Xstrata Copper-led Sagittarius Mines Inc. When completed, the Tampakan project is seen to become the biggest single foreign direct investment in the country.



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