Government assures LGUs of equitable revenue share in mining law

MANILA, Philippines – The country’s new mining policy will ensure an equitable share in revenues for local government units (LGUs) as well as give them a voice in the soon-to-be-formed council that will prepare the implementing rules and regulations for Executive Order 79 which seeks to give the industry a clearer direction.

The council is also tasked to draft legislation to replace the Mining Act of 1995.

The executive order, signed by President Aquino on July 6, specifically cited Article 10 of the Constitution stating that LGUs were entitled to an “equitable share in the proceeds of the utilization and development of the national wealth within their jurisdiction” and “the Local Government Code of 1991 provides that LGUs have the duty and authority to protect and co-manage the environment and enhance the right of the people to a balanced ecology.”

Based on the EO, LGUs shall confine themselves to imposing reasonable restrictions on mining activities within their respective jurisdictions. The restrictions, however, should be consistent with national laws and regulations.

Concerned government agencies, in particular the Department of Environment and Natural Resources (DENR), the Department of Budget and Management (DBM), and the Department of Finance (DOF), are directed to ensure the timely release of the share of LGUs in accordance with the Local Government Code of 1991.

These agencies are likewise directed to study the possibility of increasing LGUs’ share as well as granting them direct access similar to existing arrangements with the Philippine Export Zone Authority (PEZA), according to the EO.

Earlier, Environment Secretary Ramon Paje said the new mining policy was aimed at ensuring that the ordinances issued by the LGUs were consistent with national laws on mining.

“What the EO is saying is that somehow there must be consistency between national laws and local laws. And, of course, with this, the local ordinances cannot be against national policies,” Paje said.

“Section 12 (of EO 79) recognizes the need for national laws and local ordinances to be harmonized to ensure the proper management and regulation of the mining industry,” Paje explained.

The EO also aims to reconcile the roles of the national government and the LGUs as far as mining is concerned.

With the crafting of the EO, the national government shall coordinate and cooperate with the LGUs in ensuring the proper implementation of mining-related laws, rules and regulations, especially for small-scale mining.

The Provincial/City Mining Regulatory Boards (P/CMRBs) will help the LGUs to properly regulate small-scale mining and provide an appropriate forum for the different stakeholders.

The LGUs, the EO said, shall be part of the Mining Industry Coordinating Council (MICC) to ensure that their position and concerns are addressed.

“But if there are local ordinances, like the one in South Cotabato – it remains valid because there is a process in invalidating it. It remains valid until it is invalidated by competent authorities or through the courts,” Paje said.

As may be directed by the President, the MICC may create a task force against illegal mining and seek the assistance of all law enforcement agencies, including the police and the military, to ensure strict compliance with relevant laws. –-Aurea Calica and Jess Diaz (The Philippine Star) with Artemio Dumlao