The Chamber of Mines of the Philippines criticized the passing of a provincial ordinance banning open pit mining in Zamboanga del Norte and urged the national government to settle conflicting national and local laws on mining.
The industry group said it was “deeply concerned” as the ban affects two of its member-companies: TVI Resource Development (Phils.) Inc. (TVIRD), which operates a copper-zinc mine in Siocon town; and Philex Gold Philippines Inc. (PGPI), which plans to revive its gold project in Sibutad municipality.
“As we join the stakeholders of TVIRD and Philex in their 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 III’s developmental agenda,” the Chamber of Mines said in a statement.
The industry group said that the ordinance sends conflicting signals to all potential investors of the country and is an urgent issue that must be addressed by both the national and local governments.
“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,” the Chamber of Mines said.
The Chamber of Mines added that the ordinance will have a “destabilizing” effect on the province as it affects communities benefiting from responsible mining operations of member-companies while being “biased” toward the small-scale mining sector, which does not follow stringent regulations and does not pay taxes commensurate to the volume of minerals that it mines.
The Inquirer reported on Tuesday that the provincial assembly in Zamboanga del Norte had published the ordinance last week. In a statement issued Tuesday night, TVI Pacific said it would challenge the “unconstitutional” ordinance in court.
The industry group stressed that it is in favor of mining practices that benefit all stakeholders and advances responsible stewardship of the environment.
“Both TVIRD and Philex are reputable corporate citizens with excellent track records in protecting the environment and advancing the development of communities in which they operate,” the industry group said.