The local mining industry has one less roadblock on its way to revival after President Duterte lifted a nine-year moratorium on new mineral agreements between the government and the private sector.
Duterte signed Wednesday Executive Order (EO) 130 lifting a moratorium on new mineral agreements imposed in 2012, reopening the door to fresh mining investments as he seeks to boost state revenues to fund infrastructure projects and other initiatives.
But the industry’s full potential cannot be harnessed with the continued ban on open pit mining ban under Department Order 2017-10.
MIiners have said lifting of the ban on open pit mining can “unlock” at least $1.8 billion in additional exports and P12 billion in revenues for the government. Large metallic mining projects of Kingking, Tampakan and Silangan have been stalled by the ban.
In lifting the moratorium, Duterte said new mining projects can support various government projects such as the Build, Build, Build Program by providing raw materials for the construction and development of other countries apart from the expected increased employment opportunities in remote rural areas.
The President said the DENR conducted a thorough review of the regulatory framework of the mining industry placed additional rules, regulations and policies for enhanced environmental safeguards to ensure that mining operations observe environmental protection.
In a statement, the Chamber of Mines of the Philippines said the new policy will allow the local mining sector to provide additional government revenues in the form of taxes, fees and royalties apart from increased export value as well as employment opportunities.
“The removal of this policy roadblock will undoubtedly help encourage both local and foreign investments into the country. Since 2010, investor interest in the Philippines has declined. EO 130 will help bring the Philippines back on the investment map,” the group said
COMP said there are adequate social and environmental laws, rules and regulations that will mitigate the impact of mining on communities and the environment.
Meanwhile, the Philippine Nickel Industry Association also welcomed the new government policy.
“PNIA has always maintained the industry’s contribution to countryside development by providing employment opportunities and livelihood, and ensuring the sustainability of our host communities. We remain steadfast in our thrust to adhere to the highest safety standards in our operations and to deliver beyond compliance on environmental safety and protection,” the group said in a separate statement,
However, environmental group Alyansa Tigil Mina said the lifting of the moratorium is a “betrayal” against the legacy of former DENR Secretary Regina Lopez and is a “treachery” against the future generations of Filipinos.
The Philippines is one of the world’s largest producer of nickel, copper and gold.
The Philippines is currently the biggest supplier of nickel ore to top metals consumer China, though less than 5 percent of its reserves of all minerals are estimated to have been extracted so far. – With Jocelyn Montemayor and Reuters