Former President and now Speaker Gloria Macapagal Arroyo has called on the mining industry to help President Rodrigo Duterte achieve his economic and environmental agenda by working closely with the Department of Environment and Natural Resources (DENR) to make sure that laws on sustainable and responsible mining are carried out.
“We should help the sector and help the DENR. Because when the industry players and the DENR work together, your sector can contribute greatly to government revenues, exports, economic growth, job creation and the progress and development to the local communities that host mining,” Speaker Arroyo told mining industry leaders at the Philippine Nickel Industry Association (PNIA) Nickel Initiatives Forum at Shangri-la Towers in Bonifacio Global Center (BGC) Tuesday.
She pointed out that the mining industry should endeavor to work closely with the DENR in order for it to grow even with the strict stance of President Rodrigo Duterte on mining. “I have said earlier that even under my successor who was very strict about mining, the sector even grew compared to my time, and thus what we want to do now. Even in today’s policy and regulatory environment, we want to have the sector grow and contribute to sustainable national development,” she pointed out.
Arroyo said the nickel mining industry can become contribute largely to President Duterte’s economic policies particularly on his on his Build, Build, Build program and tax reform. “It is so important for the Philippines because the Philippines is the 2nd largest supplier of nickel in the whole world. So hopefully, if we end up on the same page with government in mining and we were able to revitalize the manufacturing industry, because President Duterte’s economic policies on “Build, Build, Build” and tax reform, are truly revitalizing our economy, then nickel ore production will increase in the coming years,” she said.
On the part of the DENR, Speaker Arroyo said it should view itself not just a regulator but also as a promoter of responsible, world-class, efficient and mining businesses.
Traditionally, Speaker Arroyo said mining was always a major sector of the Philippine economy. However, after EDSA I, in the mid-1980s, mining was virtually banned.
“Then during my presidency, I revived the mining industry. In January 2004, I issued EO 270, declaring the policy to promote responsible mineral resources operation, development and utilization in a manner that is conducive to sustainable development and with due regard to justice and equity, and sensitivity to the culture of the Filipino people, and respect for Philippine sovereignty. That is what my EO 270 did as it provided for the guideline for reviving the mining industry,” said Speaker Arroyo.
In December 2004, the Speaker said they were able to reverse a Supreme Court ruling that was adverse earlier. The high court ruled favorably on the issue of foreign participation in mining. “I think those two acts in 2004 were what led to the present modern day mining boom in the Philippines,” said Arroyo.
“My successor was against mining and apparently wanted to ban it but his Executive Secretary, I’ve told, and pointed out that there was no legal basis for a ban on mining. So what he did was to only ban new permits,” Arroyo added.
Despite his stance against mining, the industry grew under the time of her successor because bigger operations were carried out, she stressed. “But note, he did not ban any old existing operations through EO 79. Thus, 20 new operations were initiated in my successor’s time. Even under EO 79 using only existing permits and expansions. So, despite the fact that there was a ban on new permits, actually mining output during my successor’s tenure was bigger than during my tenure,” said Arroyo.
During the present administration, in April 2017, the DENR issued Order No. 10, banning the open pit mining for copper, gold, silver and complex ores in the country. But even then, according to Speaker Arroyo, the Secretary of mining was very quick to point out that the ban on open pit mining did not include nickel mines.
“There were report at the time, urban legend the Secretary of the Environment closed 20 mining companies. But I think you know the facts. Actually none of them were closed. However, in that negative mindset regarding mining, the industry’s output went back to the levels of my time. And this worried you, the business community and inspired your industry to become more militant. The Chamber of Mines became more unified and the sector even began considering legal action. But when I became Speaker I discouraged legal action,” she stated.
The Speaker said Congress should not have an adversarial stance towards mining. Instead, Congress should help the mining sector and the DENR because when the industry players and the DENR work together, mining sector can contribute greatly to government revenues, exports, economic growth, job creation and the progress and development to the local communities that host mining.
“I have said earlier that even under my successor who was very strict about mining, the sector even grew compared to my time, and thus what we want to do now. In the remaining years of his administration we should help the DENR focus on harvesting the fruits of those good seeds within President Duterte’s term,” Speaker Arroyo said. | Ed Galvez