Open pit mining ban ‘unconstitutional’

The Chamber of Mines of the Philippines (COMP) on Thursday expressed deep concern over the passing of a provincial ordinance banning open pit mining in Zamboanga del Norte, saying that it will send conflicting signal to all potential investors.

In a statement, the COMP stressed that the ordinance with all its onerous terms—including sweeping new provincial regulatory powers over large mining operations that “clearly usurp the authority of the national government”—is grossly unconstitutional.

“It sends a conflicting signal to all potential investors of the country and is an urgent issue that must be addressed by both the national and local government,” the chamber said.

“We appeal for the Zamboanga del Norte Provincial Board Members to reconsider their decision to pass the ordinance, we also call on the national government to act on harmonizing conflicting national and local laws that have now become irritating obstacles to President Benigno Aquino 3rd’s developmental agenda,” the group added.

Also, the COMP appealed to political leaders to stop penalizing legitimate and responsible enterprises and stop believing false and anti-development propaganda disguised in the name of the environment or ancestral domain.

“There are proven and modern solutions in responsible mining for the huge benefit of all,” the COMP said.

The ban on open pit mining will affect two member-companies including TVI Resource Development (Phils.) Inc. (TVIRD), which operates a copper-zinc mine is Siocon town; and Philex Gold Philippines Inc., which plans to revive its gold project in Sibutad municipality.

“Both TVIRD and Philex are reputable corporate citizens with excellent track records in protecting the environment and in advancing the development of communities in which they operate,” the COMP said.

It added that the Zamboanga del Norte ordinance will have a destabilizing effect on the province as the new law will adversely affect the livelihood of hundreds of employees and their families as well as of thousands of residents in host and impact communities of TVIRD and Philex that benefit from the responsible mining operations of these companies.

“The chamber is for mining that benefits all stakeholders and advances responsible stewardship of the environment,” the COMP said. The COMP also stressed that the provincial ordinance is biased towards small-scale mining, whose operators do not follow proper health and safety standards.

“They do not employ methods of mineral extraction that mitigate the impact of their operations on the environment; small-scale mining operations are not subjected to the stringent environmental regulations required in large-scale mining,” they said.

It also said that responsible mining operations such as TVIRD and Philex have proven to be effective partners of government in revenue enhancement, employment generation, livelihood promotion, educational advancement, environmental management and protection, as well as poverty alleviation.

“Government tax collections from small-scale mining operations are not commensurate to the volume of minerals that they mine,” the COMP said.

But despite the ban, TVIRD said it intends to continue operating at the Canatuan mine without disruption until all legal remedies were exhausted. The Canatuan mine, which is based on a copper/zinc massive sulphide mineral deposit, is wholly owned and operated by TVIRD.

Last September, TVI Pacific chairman and chief executive Clifford James said the company earmarked more than $10 million for exploration projects next year to extend the operating life of the Canatuan mine.

The remaining mine life of two years would be extended after exploration projects yielded positive results, James said.

The executive also bared plans for zinc shipments.

The company said the ordinance, however, has no impact on TVIRD’s gold development project at Balabag, Zamboanga del Sur. “Development plans continue at Balabag,” TVI Pacific said. –James Konstantin Galvez REPORTER, Manila Standard Today