The voluntary suspension of activities at the Siana gold project in Surigao del Norte was an “unfortunate” result of regulatory inconsistencies that are affecting even responsible operators that have passed the mine audit, according to the Chamber of Mines of the Philippines (COMP).
The Siana mine passed the audit, but it needed approval for new permits to be able to continue operations.
“We find it unfortunate that Red5 (Ltd.) has had to suspend mining operations,” COMP vice president Ronald Recidoro said in a statement.
“Despite exercising due diligence in its mining operations (it passed the Department of Environment and Natural Resources mine audit) and timely filing the appropriate ECC (environmental compliance certificate) application for a new tailings storage facility, Red5 has had to stop operations,”
Recidoro said.
The lawyer said this development was to the detriment not only of investors, financiers and stockholders, “but more importantly, the people and communities that the Siana mine supports.”
“There is no cogent reason for the EMB to delay action on Red5’s ECC application,” he said, referring to the Environment Management Bureau, which is the authority that issues ECCs.
Recidoro said Red5’s Philippine affiliate, Greenstone Resources Corp., had to suspend operations because its existing tailings storage facility or TSF is expected to reach full capacity within a month. Greenstone needs EMB approval of its application for an amended ECC, which would allow the company to build a new TSF.
“EMB’s failure to act in a timely fashion on the application sends negative signals to global investors, many of whom are keen on investing in the Philippines but are concerned with recent regulatory inconsistencies and uncertainties created by the DENR,” he said.