Gov’t to review ban on open-pit mining

The government may consider lifting the ban on open-pit mining as a review to be conducted by the interagency Mining Industry Coordinating Council (MICC) will determine if the global practice can also be implemented here.

“The MICC tasked the technical working group (TWG) on economic affairs and on environment to again study whether open-pit mining should be allowed or not. Because right now, there’s a [Department of Environment and Natural Resources] order that imposes a ban. We just have to restudy that,” Finance Undersecretary Bayani Agabin said on the sidelines of a forum organized by the Economic Journalists Association of the Philippines last Friday.

“Worldwide, around 85 percent of the mines engage in open-pit mining. The issue there is, can you manage it?” Agabin said.

The results of the TWG study will be submitted to the President as well as to the DENR, Agabin said. “In their discretion, if they believe that the study is well-based, then they can adopt, reject or modify whatever is going to be submitted.”

Agabin noted that when President Duterte recently met with mining firms, “he had a statement there that he is not against open-pit mining. He just wants that any damage that you caused, you have to fix,” Agabin added.

The finance official said the go-ahead for the possible lifting of the ban on open-pit mining will come from the DENR, which implements the Mining Act.

“The MICC is more on advisory, but the beauty about the MICC is it’s multisectoral. All viewpoints can be considered,” Agabin said. The Department of Finance co-chairs the MICC with the DENR.

Several publicly listed mining firms had already criticized the DENR order banning future open-pit operations claiming it was against the Mining Act.

DENR Administrative Order 2017-10, issued last April 27 by then Environment and Natural Resources Secretary Regina Lopez, covers “open-pit method of mining for copper, gold, silver and complex ores,” but not quarry material.

The Philippine Stock Exchange earlier asked listed firms to explain how this would affect their businesses and none said there was any expected effect. However, seven firms said the order ran counter to the mining law.

Nickel Asia Corp., which operates four mines that use the open-pit method, said it believed the administrative order was “not in accordance with the law and is therefore legally questionable.”

Lepanto Consolidated Mining Co. said the order was “issued beyond the authority of the DENR Secretary” considering that the Mining Act “does not prohibit open-pit mining.”

MacroAsia Corp. also claimed the law allowed open-pit mining.

Global Ferronickel Holdings Inc.—parent company of Platinum Group Metals Corp.—said “the order needs to undergo thorough review and consultation with stakeholders to overcome potential legal challenges.”