Statement on DENR Secretary’s Suspension and Closure of Mines


February 6, 2017

Philippine Nickel Industry Association, Inc. (PNIAI)

Statement on DENR Secretary’s Suspension and Closure of Mines

The PNIAI expresses its grave disappointment with the decision of DENR Secretary Gina Lopez to suspend and shut down the operations of twenty-eight (28) metallic mines operating in the Country. We believe that the Secretary’s action is not only bereft of transparency, due process and factual basis, but likewise detrimental to the mining industry and the Philippine economy as a whole and a serious threat to the livelihood and economic well-being of the affected communities.

During a press conference on Thursday, DENR Sec. Gina Lopez announced the suspension and closure of 28 metallic mines supposedly because such mines were not compliant with existing mining laws and regulations. This is notwithstanding the fact that most of those meted with suspensions and closure of operations had substantially passed the audit conducted.

We find it highly irregular that no official of the Mines and Geosciences Bureau (MGB) was present during the announcement. MGB, being the lead agency in the mining audit should have been present to discuss and explain the results of the audit. Mining operations are highly technical and scientific, and should not be based merely on a lay person’s visual appreciation. Yet, vague, unauthenticated aerial videos of the mine sites and its surrounding areas were presented to support the Secretary’s decision.

No scientific data was presented. Actual studies and data from technical experts who took part in the audit were withheld. In fact, no one from the MGB – the DENR bureau, which conducted the audit – was even invited to discuss its findings. Instead, only the statements from anti-mining advocates were presented during the said press conference.

A number of metallic mines were ordered closed because these were allegedly located in vital watersheds. This is clear misinformation. It seems Secretary Lopez arbitrarily refuses to acknowledge that certain portions of our patrimony is reserved for mineral exploration and production by law and executive fiat. Through her pronouncements, Secretary Lopez is willfully ignoring the fact that no Mineral Production Sharing Agreement would have been issued by the DENR if the proposed mine site is located within a declared watershed or in areas that are closed to mining operations.

The Secretary in her haste to suspend and/or close these metallic mines has also failed to consider the disastrous impact her decision would have on the hundreds of thousands of employees who would lose their jobs, the affected communities that receive support and benefit from the mining operations and the country’s image in the international market. Worse, the Secretary’s action is contrary to President Duterte’s policy to respect and honor the sanctity of government contracts; and contravenes the due process clause and non-impairment of contracts clause of the Constitution.

Despite this, PNIA’s member-companies remain committed to operate responsibly with the highest industry standards and to ensure due observance and compliance with existing laws. PNIA assures all stakeholders of the Nickel Industry, especially our workers and beneficiary host communities, that we will seek clarification with DENR on this matter and exhaust all avenues to save our industry.